The Difference Between Midland Credit Management and Midland Funding and Why You Should Care

If you are being sued by Midland Funding you have no doubt met Midland Funding’s evil twin – Midland Credit Management, Inc.  Most people simply refer jointly to these companies as “Midland” and press forward trying to figure out a way to make the debt collection lawsuit go away.

But understanding the difference between Midland Funding, LLC and Midland Credit Management, Inc. can have a profound impact on whether you win or lose your debt collection case.

Midland Funding, LLC – The Junk Debt Buyer

In most cases Midland Funding, LLC is the company who is claiming that they own the debt and most often the plaintiff in the debt collection lawsuit.  According to the numerous custodians of records I have cross-examined over the years Midland Funding doesn’t have any employees but is merely a company set up to purchase old charged-off debt.

Midland Credit Management, Inc. – The Debt Servicer

Midland Credit Management, Inc. (“MCM”) claims to do nothing more than service the accounts held by Midland Funding.  This means that MCM is not claiming to actually own the debt or claiming that MCM is entitled to any type of payment.

The reason this information is important is because the witness at trial or arbitration is likely going to be an employee of MCM (remember, they claim Midland Funding doesn’t have any employees).  In order for an MCM employee to be able to testify as to the accuracy of Midland Funding’s accounts the witness must be able to demonstrate that they have knowledge of how Midland Funding’s records are created and stored.

Many times when you push the MCM witness on cross examination you find out that all the MCM witness really knows is how MCM keeps and stores its records, not how Midland Funding keeps and stores its records.  This is important as any witness called as a custodian of records must have some knowledge of how Midland Funding creates, stores, and maintains its records.

If they can’t testify about the record creation and retention practices of Midland Funding then the document should not be admitted into evidence.  If there is no evidence admitted there can be no judgment against you.